As fall is officially upon us, those of us living in the northern hemisphere are enjoying the crisp air and cooler temperatures, and the softer, golden light of autumn. However, with the beauty of the season can also come a surge in severe weather activity, and for anyone operating in logistics or supply chain in affected areas, it can be a nerve-wracking time of year.
Tropical Storms vs Hurricanes
Is there a difference? There certainly is. The United States is in the Atlantic Ocean basin, where tropical storms are most likely from late August to September, and Atlantic hurricane season can run from June through to the end of November. The key difference between tropical storms and hurricanes is wind speed. Tropical storms have sustained winds of 39 miles per hour (mph) or more, and hurricanes have sustained winds of at least 74 mph, which makes them more destructive when they make landfall.
We’re currently in the midst of hurricane season, with only recently Hurricane Helene making landfall in northwestern Florida as a Category 4 hurricane. Whether it’s a tropical storm or hurricane, for those in the business of logistics and supply chain it is a stressful time of year. Business can’t stop, and deadlines must be met. But sometimes they can’t be, and what exactly are the impacts of severe weather on the overall supply chain? Let’s unpack.
1. Transportation delays
Road closures caused by flooding, debris, or landslides from the storm or hurricane can block roads, preventing trucks from delivering goods. Similarly, port closures due to high winds and rough seas can halt the movement of cargo. Air freight is often interrupted when airports cancel flights or shut down, delaying shipments, and rail transport can also be affected by flooded or damaged tracks, which may halt or significantly slow down rail services. This means that across several transport means and routes, goods will simply not be delivered.
2. Production disruptions
Tropical storms and hurricanes can significantly impact manufacturing by causing factory shutdowns in affected areas, leading to delays in production schedules. Suppliers in storm-impacted regions may also struggle to deliver essential raw materials, resulting in further downstream delays in production.
3. Warehousing issues
Warehouse operations can be brutally impacted by tropical storms or hurricanes, particularly in coastal regions or areas near rivers, where flooding may damage stored goods. This can create inventory management challenges, as damaged stock can lead to shortages or delays in order fulfilment.
One of the most significant issues for warehousing is the power outages caused by the storm, which can disrupt warehouse operations, affecting the ability to track inventory and move goods efficiently. In fact, 83% of power outages are severe weather related, according to constellation.com.
4. Disrupted supply and demand patterns
As a storm approaches, panic buying by consumers can lead to sudden surges in demand, disrupting normal inventory management. This increase in demand means suppliers push to speed up operations before the storm hits, and with speed comes error and the heightened risk of accidents on site for personnel.
5. Increased costs
Tropical storms and hurricanes can lead to higher freight costs as shipments may need to be rerouted, alternative transportation modes used, or expedited services arranged, all of which increase expenses. Additionally, in oil-producing regions, these storms can cause fuel shortages or price spikes, further impacting transportation costs.
Restoring infrastructure can also be a momentous cost and can involve significant time and money, leading to further delays and increased logistics costs.
6. Human impact
Of course, there is always human impact, and the safety of the people directly affected. Wet road surfaces and high-speed winds also mean that personnel are at risk of accidents when on the road, or vehicles and trailers flipping, resulting in staff severely hurting themselves.
From a business operations point of view, tropical storms and hurricanes can result in labor shortages as workers may then be unavailable due to injuries or evacuations. This includes essential logistics personnel, such as truck drivers, port workers, and warehouse staff, whose absence can significantly disrupt operations.
Can the impact be lessened?
As we’ve unpacked, tropical storms and hurricanes can have significant and widespread effects on logistics and supply chain operations, and pose significant risks to the stability and efficiency from production right through to delivery. However, if there is a robust disaster preparedness plan in place, flexible logistics strategies, and strong supplier relationships throughout the chain, the impacts of the storm or hurricane can be minimized.
The American Red Cross has a Hurricane Safety and Preparedness Checklist, available in multiple languages, as well as a High Winds Safety Checklist, and is a great source of information for those looking to create a robust plan of preparation, both at work and in the home. We recommend you give it a read and give yourself, your people, and your business, the best chance at preparation and protection.
